Global air passenger demand dips as Middle East conflict weighs on travel - Travel Monitor
Global air passenger demand fell 2. 2% year-on-year in May, with the ongoing conflict in the Middle East continuing to suppress traffic, according to the latest data from the International Air Transport. . .
Global air passenger demand fell 2. 2% year-on-year in May, with the ongoing conflict in the Middle East continuing to suppress traffic, according to the latest data from the International Air Transport Association (IATA). Despite the overall decline, airlines recorded a record May load factor of 83. 5%, with demand remaining resilient across most regions outside the Middle East. Middle East conflict drives global slowdownIATA said carriers in the Middle East experienced the sharpest decline, with passenger demand falling 28. 4% year-on-year. While significant, the result marked an improvement on the 46. 6% decline recorded in April, indicating the region’s gradual recovery. International passenger demand declined 1. 6% globally, but excluding the Middle East it increased 3. 1%. Domestic demand fell 3. 1%, driven largely by weaker performances in the United States and China. IATA Director General Willie Walsh said the impact of the conflict remained concentrated in the Middle East. “Air passenger demand was down 2. 2% year-on-year in May on the impact of war in the Middle East,” Walsh said. “The decline was centred on carriers in the Middle East with a 28. 4% year-on-year fall. That’s a significant improvement on the 46. 6% decline recorded for April, a sign of the region’s resilience. ”Europe and Latin America post growthEuropean airlines recorded a 3. 8% increase in international passenger demand, while Latin American carriers reported the strongest regional growth at 10. 5%. African airlines also posted an 8. 9% increase, while Asia-Pacific carriers achieved modest growth of 1. 3%. In Australia, domestic passenger demand was broadly stable, easing 0. 1% year-on-year, while capacity fell 0. 3%. Walsh said airlines continued to face pressure from elevated fuel costs despite recent falls in oil prices. “While the recent sharp drop in oil prices is an encouraging development, the challenges created by the war will likely persist for some time,” he said. With airline profit margins remaining around 2%, Walsh said carriers would likely continue testing demand through higher fares until jet fuel prices returned to more normal levels. For more information, visitIATA